Everything You Need To Know About Billing Rates (and then some)
The two words that can make anyone squeamish. Visions of blurry numbers and snippets of old advice merge together into a traumatic reel.
When it comes to calculating billing rates, hourly rates have conventionally been determined to be 3x or 4x wages. Now that's quite a wide span, which makes it difficult to predict profitability accurately.
There are plenty of other issues with the lax way managers try to make these calculations. For example, what should the driver of these rates really be? Should labor determine what the bill is, or should the bill rate determine the staff wage?
To start answering these pressing questions, one needs to be familiar with their full wage totals, taxes and benefits, both fixed and variable overhead, management burden, and more.
Not only is it important to consider the bill rates, but it is then vital to also improve your utilization rates to bring those margins up! You want to make a profit, and you should know how much of a profit to expect.
ClickTime's latest white paper, Determining Your Billing Rates, helps you make sense of your billing rate, how you should calculate it for the greatest profitability, and offer deep and thoughtful insights on the process behind it. Grab a digital copy of the paper below to learn everything you need to know.